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Why would Prepaid Insurance have a credit balance?

Accounting Auditing Budgeting Financial Reporting Financial Accounting
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Question added by Ahmed Hassanin CMA , Financial Planning and Controlling Manager , Methode Electronics
Date Posted: 2015/07/13
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Mehboob Ali Laghari
by Mehboob Ali Laghari , Social Mobilization Team Incharge , TRDP-European Union

Initially all prepaid accounts are assets however any amount of them consumed will be added into expenses account. in the above case, the cash will be credited while its description states debit.

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